Italian firm Jusp has unveiled a new tariffing approach for the mobile point-of-sale (MPoS) market, as it attempts to differentiate itself in a crowded market and attract larger retailers.

The firm is dropping the common 2.5 per cent processing fee that MPoS providers traditionally charge merchants in favour of a monthly fee that is set on a sliding scale, depending on the level of MPoS-related monthly sales.

This means a retailer’s charges go up when they are busier, for instance during December, and then fall during the quieter month of January.

The monthly fee varies between €39 and €69 per reader. Users plug the reader into their smartphone in order to accept payments.

Traditional MPoS pricing structures charge only a commission fee, typically 2.5 per cent, which makes sense for small merchants with transactions of less than €20,000 per year but less so for larger retailers, said Jusp.

For those turning over between €20,000 and €70,000, a monthly fee makes more sense, said Jacopo Vanetti (pictured), the firm’s CTO. “This new pricing model presents the larger merchant market with a much needed solution.”